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Bond Retirement
The process by which an issuer fulfills its obligational repayment of the principal amount of a bond before its maturity date.
Interest Expense
The cost incurred by an entity for borrowed funds, referring to the interest paid on debt.
Effective-interest Method
A method for calculating the interest expense on a bond that involves allocating the bond's interest expense over its life in a way that yields a constant rate of interest.
Book Value
Book Value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus its depreciation.
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